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So, in my experience, there are seven levels of "traction," and each level has various nuances. For example, "the launch" could be a soft launch or a beta launch. "The idea" may be rough, modeled, patented, etc.

At each level of traction, quality of the execution is measured by investors. So, a great idea with a great team may secure a similar sized funding as a mediocre idea with strong adoption.

In the 2010 market, most semi-professional investors, such as organized angels, require a prototype for serious consideration, and most venture capitalists require initial success with adoption. There are exceptions, though rare, and you can overcome the need to hit traction thresholds by dominating in the present. Amazing adoption eliminates the need for revenue (Twitter, FaceBook, YouTube). A great team overrides the need for a prototype, etc.